MINUTES - Regular - 12/9/2010
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CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
REVISED
A Regular Meeting of the City Council was held in the Council Chamber on Thursday,
December 9, 2010 at 7:00 P.M., for the purpose of transacting any and all business. Notice of
this meeting was posted on December 2, 2010 at 7:01 P.M. This meeting is being taped and is
live on S.A.T.V.
Councillor Lovely was recorded as absent.
Council President McCarthy presided.
Councillor Pinto moved to dispense with the reading of the record of the previous meeting. It
was so voted.
President McCarthy requested that everyone please rise to recite the Pledge of Allegiance.
Councillor Sosnowski requested a moment of silence for Sgt. James Ayube a Salem
resident who was killed in Afghanistan.
Councillor O’Keefe requested a moment of personal privilege to present Council President
McCarthy with a parting gift. There was no objection.
A Public Hearing of the City Council for the purpose of discussing the allocating of local
property tax levy among the (4) property classes for the fiscal year 2011, and the residential, open
space, and small commercial exemption options.
Council President Robert K. McCarthy presided.
In attendance was Members of the Board of Assessors Richard Jagolta, Don Bates and
Damian Johnson, Finance Director Richard Viscay, and the Assessor Deborah Jackson and his
staff Joe Murphy and Paul Tierney.
President McCarthy then turned the Public Hearing over to the Board of Assessors to make
a presentation.
The hearing was then turned over to the Assessor Deborah Jackson.
Ms. Jackson introduced her staff and the Board of Assessors. She gave the definitions of
terms with a power point presentation.
CIP – Commercial Industrial Factor
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RF – Residential Factor
Levy – dollars to be reused through taxes
RES – Residential Property Classification
She stated that the Levy has gone up on an annual basis of 2 ½ percent. To calculate the FY2011
Levy Limit you take the FY2010 Levy Limit
$70,134,978
Add: 2.5% Increase 1,753,374
Add: FY2011 New Growth 1,104,777
FY2011 Levy Limit $72,993,129
Ms. Jackson continued that the assessors look at the Sales of 2009 which was 826 in 2009.
The slide show showed 290 Condominiums, 220 single families, 214 multi-families, 41 commercial
and industrial properties and 61 other sales of mixed use, land, etc. These sales of 2009 are used
to determine the FY2011 values. The residential parcels are made up of 42% single family, 33%
condos, 14% two families, 5% three families, 3% multi family and 3% residential land.
The average single family bill in Salem for FY2010 was $4,370. In comparison to neighboring
communities Danvers was $4,576, Marblehead $6,561, Peabody $3,111, Gloucester $4,997, Lynn
$3,480, Beverly $5,011 and Swampscott $7,843.
The recommended CIP Shift and tax rate is 1.65 which is 85.4083%.
Councillor Ronan questioned the adoption of an Appropriation to offset tax to be raised why
is it $934,000? Our accounting so it would be that it off sets our tax rate.
Mr. Viscay explained in the summer when the budget is adopted the revenues are only an
estimate, now we have the exact figure to move revenues towards the tax rate.
Council president McCarthy opened the public hearing to the audience.
Mayor Driscoll stated that this year under our levy limit and to balance the budget in the
spring is commendable. We don’t have to maximize taxes to the residents and have $600,000 in
reserves while also maintaining services. We support 1.65 tax rate. Our businesses pay a little
more that residential and they still help us with donations.
Councillor Pelletier asked about this years tax rate in regards to the power plant closing?
Mayor Driscoll stated currently we have 1.65, we have a study regarding the power plant.
Rinus Oosthoek Director of the Chamber of Commerce, stated we work closely with the
Council but putting the numbers in prospective for businesses accordingly it’s $29 per thousand in
Salem, Gloucester is $11.00 per thousand and Beverly is $19.42 per thousand. Keep in mind when
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setting the rate the new growth is important to focus on with all the challenges ahead of us. We
need to be smart about our growth.
Councillor McCarthy thanked the Assessor and the Board of Assessors for their
presentation and moved that the public hearing is closed. It was so voted.
(#614) – APPOINTMENT OF KATHLEEN MCMAHON AS CITY TREASURER
Held from the last meeting the Mayor’s appointment of Kathleen McMahon to serve as the City of
Salem’s Treasurer with a term to expire on January 31, 2013 was held until the next meeting of
January 13, 2011 due to the absence of Ms. McMahon.
#652 - CONSTABLES
The Mayor’s appointments of the following to serve as Constables with the following terms
to expire, was received and placed on file.
Johanna Rodriguez, 4 Holly St. #2, Salem Term to Expire: November 23, 2011
Elvin Rodriguez, 4 Holly St. #2, Salem Term to Expire: November 23, 2011
Ernasto Ayala, 4 Holly St. #1, Salem Term to Expire: November 24, 2011
Victor Nolasco, 298 Washington St., Salem Term to Expire: November 24, 2011
#653 - APPR. FROM “FREE CASH” TO STABILIZATION FUND & CAPITAL IMPROVEMENT
FUND
The following Order recommended by the Mayor, was referred to the Committee on
Administration and Finance under the rules.
ORDERED: That the sum of Three Hundred Thousand, Two Hundred and Forty-Four Dollars
($300,244.00) is hereby appropriated from “General Fund Balance Reserved for Free Cash” to the
following special revenue funds. The amount of free cash to be transferred is per the City’s
Financial Policies and in accordance with the recommendation of Her Honor the Mayor.
Stabilization Fund – 20% $150,122.00
Capital Improvement Fund 20% $150,122.00
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#654 - APPR. FROM “FREE CASH” TO THE BLANEY STREET PROJECT GRANT
The following Order recommended by the Mayor, was referred to the Committee on
Administration and Finance under the rules.
ORDERED: That the sum of One Hundred Fifty Thousand Dollars ($150,000.00) is hereby
appropriated from the “Fund Balance Reserved for Appropriation - Free Cash” account to the
“Blaney Street Project Grant” Account in accordance with the recommendation of Her Honor the
Mayor.
#655 - APPR. FROM “FREE CASH” TO “VETERANS – BENEFITS”
The following Order recommended by the Mayor, was adopted under suspension of the
rules.
ORDERED: That the sum of One Hundred Twenty-Five Thousand Dollars ($125,000.00) is
hereby appropriated from the “Fund Balance Reserved for Appropriation - Free Cash” account to
the “Veterans - Benefits” Account in accordance with the recommendation of Her Honor the Mayor.
#656 - APPR. TO BE EXPENDED FOR WHARF PROJECT AT BLANEY STREET
The following Order recommended by the Mayor, was referred to the Committee on
Administration and Finance under the rules.
ORDERED: That the sum of Two Hundred Fifty Thousand Dollars ($250,000.00) is hereby
appropriated within the “Capital Outlay Renovations and Repair” account to be expended for Wharf
Project at Blaney Street by the Planning Department in accordance with the recommendation of
Her Honor the Mayor.
#657 - TRANSFER TO PUBLIC SERVICES – WATER OVERTIME ACCOUNT
The following Order recommended by the Mayor, was referred to the Committee on
Administration and Finance under the rules.
ORDERED: That the sum of Ten Thousand Dollars ($10,000.00) is hereby appropriated
from the “Retained Earnings – Water Fund” account to the “Public Services – Water Overtime”
account in accordance with the recommendation of Her Honor the Mayor.
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#658 - ACCEPT M.G.L. CHAPTER 73 OF ACTS OF 1986 FOR FY2011 ADDITIONAL TAX
EXEMPTIONS
The following Order recommended by the Mayor, was adopted by roll call vote of 10 yeas, 0
nays, 1 absent. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Sargent,
Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely was
recorded as absent.
Councillor O’Keefe moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
ORDERED: That the Mayor and City Council accept the provisions of Section 4, Chapter 73
of the Acts of 1986 for Fiscal Year 2011, and that such additional exemptions granted be 100% of
the statutory exemption amounts, provided all other qualifications specified in said Section 4,
Chapter 73 of Massachusetts General Laws are met.
#659 - ACCEPT DONATION FROM KERNWOOD COUNTRY CLUB
The following Order recommended by the Mayor, was adopted.
ORDERED: To accept the donation from Kernwood Country Club in the amount of Six
Thousand Two Hundred Dollars ($6,200.00). These funds will be deposited into the Mayor’s
Donation Fund in accordance with the recommendation of Her Honor the Mayor.
#660 - FIVE YEAR LEASE AGREEMENT FOR MUNICIPAL OFFICES AT 120 WASHINGTON
STREET
The following Order recommended by the Mayor, was referred to the Committee on
Ordinances, Licenses and Legal Affairs.
ORDERED: That the Mayor is hereby authorized to enter into a five-year lease agreement,
with five one-year extensions, with Peabody Block, LLC for the lease of approximately 20,000
square feet of office space for municipal departments at 120 Washington Street, Salem, MA. The
terms of the lease are provided in the attached Lease Agreement and made part of this Order.
(Upon the execution of the Lease Agreement it will be on file in the City Clerks Office)
PEABODY BLOCK LLC
LEASE AGREEMENT
Data Page
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CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
Peabody Block LLC (Owner) of 120 Washington Street
LANDLORD:
(commonly referred to as the Peabody Block) in Salem,
Massachusetts with corporate offices located at c/o RCG LLC,
17 Ivaloo Street, Suite 100, Somerville, MA 02143 and its
Property Management Agent RCG LLC (hereafter referred to
as “Landlord”)
City of Salem, Office of the Mayor, 93 Washington Street,
TENANT:
Salem, MA 01970 (hereafter referred to as the “Tenant”).
LEASE TERM: Five (5) years as further defined herein.
ANNUAL RENT: Three Hundred Forty Thousand Dollars ($340,000)
Five, separate, one-year (1 year) extension options as further
RENEWAL OPTION:
defined herein.
Office space consisting of approximately 20,000 +/- rentable
PREMISES:
square feet known as the City Hall Annex at 120 Washington
Street, including accessible common areas, bathrooms,
nd
currently used basement storage space, 2 floor North, the
rd
3 floor and the fourth floor (the “Premises”) with options to
expand its space as further described herein, being part of the
building and land located at 120 Washington Street at the
corner of Washington Street and Essex Street, Salem, MA
(the “Building”).
COMMENCEMENT
February 1, 2011.
DATE OF LEASE:
USE AND The leased Premises may be used for offices, public meetings
RESTRICTION: and other business of the City of Salem.
DATE OF LEASE: December , 2010
AGREEMENT OF LEASE
1. Demised Premises. In consideration for the rents and covenants hereinafter set forth, Landlord hereby leases
to Tenant the Premises described on the Data Page of this lease, which is the same Premises as Tenant has
occupied since 2001.
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2. Subordination of Lease. Tenant’s rights under this Lease Agreement (hereinafter referred to as the “Lease
Agreement” or the “Lease”) are, however, and shall always be subordinate to the operation and effect of any
mortgage, deed of trust or other security instrument now or hereafter placed by the Landlord upon the Premises
or upon property of which the Premises constitute a part; provided, however, that in consideration of such
agreement of subordination, Landlord agrees to obtain for Tenant, if required by tenant, a Subordination, Non-
Disturbance and Attornment Agreement with respect to any mortgage or other security instrument to which this
Lease is or may become subordinate. This clause shall be self-operative and no further instrument of
subordination shall be required. In confirmation thereof, Tenant shall execute such further reasonable assurance
as may be requisite. Tenant is required, upon ten (10) days written notice from Landlord or Landlord’s lender, to
execute and deliver to Landlord or Landlord’s lender, an estoppel certificate in form and substance acceptable to
Landlord’s lender. Tenant under no circumstances shall be permitted to record this Lease.
3. Term. Subject to Tenant’s option to renew as set forth in Section 8 hereof, the term of this Lease (“Lease
Term”) shall commence on February 1, 2011. This will be known as the “Commencement Date.” The Lease
Term will expire on January 31, 2016 (the “Expiration Date”), unless the Tenant exercises the Tenant’s option to
renew as set forth in Section eight (8) hereof. The date on which the Lease Term expires is referred to herein as
the “Expiration Date”. Rent shall commence on February 1, 2011 as further described in Section 16 herein. This
date will be referred to as the “Rent Commencement Date”.
4. Use of Premises. The Premises shall be used by the Tenant solely for the purpose of conducting therein the
business as described on the Lease Data Page.
5. Annual Rent. Tenant covenants to pay to Landlord as rent for the Premises the following Annual Rent (“Annual
Rent”) in equal monthly installments, in advance, on or before the first day of each month of the Lease Term:
Monthly
Lease Year Installment Annual Rent
1 $28,333.33 $340,000.00
2 $28,333.33 $340,000.00
3 $28,333.33 $340,000.00
4 $28,333.33 $340,000.00
5 $28,333.33 $340,000.00
New rent, if any change, each year shall come into effect on the anniversary of the Commencement Date of the
Lease in each year of the Lease Term or any renewal thereof. If the Commencement Date falls on a day of a
month other than the first day of the month, the new rent shall come into effect on the first day of the first full
month following the anniversary of the Commencement Date in each year of the Lease Term or any renewal
thereof.
6. Rent Payments. Tenant shall promptly pay Annual Rent herein prescribed, and all other charges due and
payable hereunder, including any Additional Rent, when and as the same shall become due and payable in
accordance with Section 5 above. If Landlord shall pay any monies or incur any expense in correction of
violation of covenants herein set forth, the amounts so paid or incurred shall, on notice to Tenant, be considered
Additional Rent payable by Tenant, with the first installment of Annual Rent thereafter to become due and
payable, and may be collected or enforced as by law provided in respect of rentals; provided however, that such
Annual Rent is not, and shall not be deemed to be in lieu of such other remedies at law or in equity which
Landlord has or may have. All Annual Rent payable shall be paid and delivered to Landlord’s Agent RCG LLC at
17 Ivaloo Street #100, Somerville, MA 02143 or at such other address as Landlord may designate from time to
time in writing.
7. Security Deposit and Last Month’s Rent. Tenant shall not be required to deposit a Security Deposit or Last
Month Rent with Landlord.
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8. Option to Extend. Tenant shall have the option to extend the Lease upon the same terms, other than the Rent,
for five successive one-year terms (the so-called “Option Terms”. Tenant must provide written notice to Landlord
of its intent to extend the Lease at least six (6) months before the first day of the Option Term.
If Tenant does not provide written notice to Landlord of its intent to renew the Lease, Landlord in its sole
discretion may place signage, banner or other advertisements on the Building, including at the level of the
Premises, indicating the Premises is available for lease.
Annual Rent and Monthly Installments for each Option Term shall be subject to an increase equal to the
percentage change in the “Consumer Price Index for Urban Earners and Clerical Workers, North of Boston, All
Items (1982-84 =100) (hereinafter referred to as the “Price Index”) published by the Bureau of Labor Statistics of
the United States Department of Labor, or any comparable successor or substitute index designated by the
Landlord year over year. Notwithstanding the foregoing, in no event shall the increase be less than 0% or
greater than 3%. The Annual Rent for the First Option Year shall be set by increasing the current annual rent of
$340,000 by the percentage change between the period of December 2015 and December 2010 and in this
instance the change in rent shall not be greater than 15%, since the adjustment is intended to adjust for changes
in prices over a period of five years.
9. Real Estate Taxes, Assessments and Abatements. Tenant shall not be required to pay to Landlord any
portion of Real Estate Taxes. Landlord warrants that it will timely pay real estate taxes due for the Property.
9a. Definition of Real Estate Taxes. "Real Estate Taxes" shall mean and include, without limitation, all real
estate taxes, assessments, school taxes, and other governmental impositions and charges levied, assessed or
imposed upon the Premises. Whether or not Landlord shall take the benefit of the provisions of any statute or
ordinance permitting any assessment for public betterments or improvements to be paid over a period of time,
Landlord shall, nevertheless, be deemed to have taken such benefit, so that the term "Real Estate Taxes" shall
include only the current annual installment of any such assessment and the interest on unpaid installments
calculated on the basis of the longest period of time over which such assessment is legally payable. A paid tax
bill or copy thereof shall be submitted by Landlord to Tenant and shall be conclusive evidence of the amount of a
tax or installment thereof. Nothing herein contained shall be construed to include as Real Estate Taxes any
sales tax, inheritance, estate, succession, transfer, gift, franchise, corporation, federal or local income or profit
tax or capital levy that is or may be imposed upon Landlord.
9b. Abatements. Landlord shall have right to apply for abatements in Real Estate Taxes and any savings
realized shall be for the benefit of Landlord exclusively.
9c. Certificate of Tax Compliance. As required from time to time at the request of Tenant, Landlord shall
provide certification of tax compliance pursuant to Mass. G.L. Chapter 62C, Section 49 A).
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10. Tenant’s Maintenance of Premises. Landlord shall, at its own cost and expense, repair, replace, maintain in a
good, safe, and functional condition, the Premises and Building. Notwithstanding the foregoing, Tenant shall pay
Landlord a sum of $350 per month as a contribution for the maintenance. Additionally, Tenant shall be
responsible, at its own cost and expense, for cleaning the Premises including any and all bathrooms used
exclusively by Tenant and for the cleaning and maintenance of any and all floor surfaces in the Premises.
Tenant shall keep the Premises free of any insects, rodents, vermin and other pests. Tenant shall be responsible
for changing its own light bulbs. Tenant shall continue to maintain the small HVAC systems in the computer and
server rooms at its own expense. Tenant shall not permit accumulation of garbage, trash, rubbish and other
refuse, and shall remove the same from the Premises at its expense. Tenant shall not use or permit the use of
advertising medium such as flashing lights, loudspeakers, phonographs, public address system, sound
amplifiers or reception of radio or television broadcast within the Premises that interfere with any other tenant’s
use of the Building, Tenant shall not cause or permit unpleasant odors (as reasonably determined by Landlord
and Tenant or, if Landlord and Tenant disagree, by the local health inspector) to emanate from the Premises
except for those lights, sounds, odors, vibrations or acts associated with the Permitted Use of the Premises by
Tenant; Tenant shall not cause damage to any interior fixtures including all electrical, plumbing and other
mechanical installations therein, such as heating, ventilation and air-conditioning equipment. Tenant shall
promptly notify Landlord if any system is not in good working order. Tenant shall surrender the Premises, in
good repair, except for ordinary wear and tear and damage by casualty insured against. Tenant shall keep all
thermostats set to no less than fifty (50) degrees Fahrenheit throughout the year.
10a. Tenant shall not overload the electrical wiring serving the Premises or within the Premises.
10b. Tenant shall not overburden the natural gas service to the Premises.
11. Compliance with Laws and Codes. Landlord acknowledges that at the commencement of this Lease that the
Premises, to the best of Landlord’s knowledge, shall be in compliance with the following: (a) all applicable
federal, state and local building code requirements; (b) all federal, state, and local codes pertaining to life safety;
(c) all harmful materials (including but not limited to asbestos and lead paint), if any, shall be removed from the
Premises or maintained at lower than harmful levels, as required by law; (d) HVAC systems shall be fully
automatic and capable of maintaining throughout the year minimum temperatures of 68 degrees Fahrenheit and
maximum temperatures of 78 degrees Fahrenheit throughout the Premises; (e) restrooms are provided as per all
applicable federal, state and local codes; and (f) Premises meets the minimum requirements of the federal
Americans with Disabilities Act. The Tenant acknowledges that no trade or occupation shall be conducted in the
leased premises or use made thereof which will be unlawful, improper, noisy or offensive, or contrary to any law
or any municipal by-law or ordinance in force now or hereafter enacted, promulgated or adopted in the City of
Salem. Tenant shall conduct its business in the Premises in all respects in a dignified manner in accordance
with high standards of operations.
12. Condition of Premises. Tenant agrees that Landlord shall deliver the Premises to Tenant in “as-is” condition,
except as provided for here.
Landlord agrees to complete the following scope of work (“Landlord Scope”) within the timeframes and in
accordance with the terms articulated below.
Landlord shall replace the existing cooling tower at its sole expense by no later than June 2011. After
completion of replacement, Landlord will confirm cooling levels with Planning Department. Landlord
shall also install programmable thermostats to control the third floor south HVAC system as is possible.
Landlord shall replace the flooring in the following locations according to the procedures and timelines
outlined below. Tenant, in each instance, shall be responsible for coordinating the temporary removal of
any and all equipment, desks, and other furnishings required to be relocated to allow for the efficient
installation of new flooring and Tenant shall be responsible, in each instance, to move any and all
equipment, desks and other furnishings back after the installation has been completed.
Second Floor North: Landlord shall replace the carpet at the waiting area (an approximately 3’ x 8’
area) prior to February 28, 2011. The carpet will be of similar style and grade as currently exists in this
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location. No temporary relocation of equipment and furnishings is anticipated for this flooring
replacement. All other carpets in this area shall be cleaned, with such timing of the cleaning to be
coordinated with Tenant to be mutually convenient to both parties.
Third Floor South: Upon 60 days notice by Tenant at any point prior to February 1, 2013, Landlord
shall replace the flooring as follows:
- Carpet in the main waiting area extending into the primary reception area for Inspectional
services will be replaced with similar grade carpet to the current existing space, carpet tiles or VCT at
an allowance of no more than $7 per square yard (materials and labor). Landlord and Tenant shall work
in good faith to make the selection of a cost effective and durable material for this area. Should tenant
wish to utilize carpet tiles exclusively, the cost is likely to exceed the allowance considerably.
- Carpet in the main open area of the Planning and Community Development Department shall
be replaced with similar grade carpet, carpet tiles or VCT at an allowance of no more than $7 per
square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection of
a cost effective and durable material for this area. Should tenant wish to utilize carpet tiles exclusively,
the cost is likely to exceed the allowance considerably.
- Carpet in the main area of the Purchasing Department shall be replaced with similar grade
carpet, carpet tiles, VCT or carpet runner at an allowance of no more than $7 per square yard
(materials and labor). Landlord and Tenant shall work in good faith to make the selection of a cost
effective and durable material for this area. Should tenant wish to utilize carpet tiles exclusively, the
cost is likely to exceed the allowance considerably.
- Carpet in the area of desks for most inspectors in the Inspectional Services Department shall
be replaced with similar grade carpet, carpet tile, VCT or carpet runner at an allowance of no more than
$7 per square yard (materials and labor). Landlord and Tenant shall work in good faith to make the
selection of a cost effective and durable material for this area.
- At Tenant’s option, Tenant may elect to have Landlord clean rather than replace any section
of carpet (provided such section is easily separated from the balance of the area) in order to reduce
interruption or for any other reason. If Tenant so elects to have the carpets cleaned, this will not result
in a credit to Tenant.
Third Floor North: No flooring replacement is planned or included in this area. At any point within two
years of the commencement date, Tenant may request that Landlord have these carpets cleaned and
Landlord shall be obligated to provide one cleaning of these carpets at no additional cost to Tenant.
Fourth Floor South: Upon 60 days notice by Tenant at any point prior to February 1, 2013, Landlord
shall replace the flooring as follows:
- Carpet in the main waiting area extending into the primary reception area for Engineering will
be replaced with similar grade carpet, carpet tiles or VCT at an allowance of no more than $7 per
square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection
of a cost effective and durable material for this area
- VCT in the kitchen area shall be replaced with VCT
- Carpet in remaining open areas on the floor shall be replaced with similar grade grade
carpet, carpet tiles or VCT at an allowance of no more than $7 per square yard (materials and labor).
Landlord and Tenant shall work in good faith to make the selection of a cost effective and durable
material for this area, or alternatively, Landlord will, at Tenant’s request, provide a carpet runner for
the main travel path.
- At Tenant’s option, Tenant may elect to have Landlord clean rather than replace any section
of carpet (provided such section is easily separated from the balance of the area) in order to reduce
interruption or for any other reason. If Tenant so elects to have the carpets cleaned, this will not result
in a credit to Tenant.
Elevator Landings on Second, Third and Fourth Floors: Landlord
shall replace existing carpet with new carpet or carpet tiles at the
elevator landing on each floor by no later than February 28, 2011.
Landlord shall, at its own expense, paint the walls in the following locations, with all such work
completed by no later than February 28, 2011:
Third Floor North: All pink walls in this area shall be painted an off-white color acceptable to Tenant.
Third Floor South: Walls in the main reception area for all departments shall be repainted in a color to
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match existing. Walls in the main area of the Purchasing Department will be repainted in a color to
match existing.
Fourth Floor South: Walls in the main reception area for all departments shall be repainted in a color to
match existing.
Touch-up for Other Areas in the Premises: Landlord shall provide 8 man-hours of touch-up work to be
performed at locations to be selected by designated representative of Tenant, such area could include
the windows in the Engineer’s office on the fourth floor.
Landlord shall remove at its own expense, within thirty days of request by Tenant, any oil paintings
and/or other images currently placed on walls in the Premises. Landlord shall provide Tenant with new
objects (potentially including historic images of the City of Salem, like those on the first floor of the
Building or multi-media equipment, such as a projector screen) up to a maximum cost of $1,500. Such
objects will be selected by Tenant in conjunction with Landlord and shall be purchased by Landlord.
Windows in the Planning Director’s office shall be investigated and repaired at cost of Landlord.
Landlord shall complete a full cleaning of the basement egress path and ensure all lights are
operational in the basement prior to the Commencement Date.
Landlord, at its own expense, shall install motion-sensor activated light switches in the six bathrooms in
the Premises and in the third floor conference rooms by no later than February 28, 2011.
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13. Landlord's Maintenance and Repair of Premises. The Landlord agrees to maintain the structure of the
building of which the leased premises are a part in the same condition as it is at the commencement of the term
or as it may be put in during the term of this lease, reasonable wear and tear, damage by fire and other casualty
only excepted, unless such maintenance is required because of the Tenant or those for whose conduct the
Tenant is legally responsible. The Landlord shall, at all times during the Term of this Lease, maintain, at its own
cost and expense, in a good, safe, and functional condition, all facilities, utilities and fixtures on the demised
Premises, including but without limitation HVAC (except for the small systems in the computer and server
rooms), electrical wiring, plumbing and any and all other integrated utility systems and all common use facilities,
provided that any damage to the systems are not the fault of the action of Tenant, its employees, agents or
guests. In the event that the Landlord is prevented or delayed from making any repairs or performing any other
covenant hereunder by reason of any cause reasonably beyond the control of the Landlord, the Landlord shall
not be liable to the Tenant therefore nor, except as expressly otherwise provided in case of casualty or taking,
shall the Tenant be entitled to any abatement or reduction of rent by reason thereof, nor shall the same give rise
to a claim by the Tenant that such failure constitutes actual or constructive eviction from the leased premises or
any part thereof.
Landlord shall within reasonable amount of time from its knowledge of a necessary repair, shall repair any
damage to the Premises not caused by an act of Tenant or its employees, agents or guests. Tenant shall repair
promptly at its own expense any damage to the premises caused by any act or omission of the Tenant, its
employees, agents, contractors, invitees, or licensees, or caused by bringing into the Premises any property for
Tenant’s use or by the installation or removal of such property, regardless of fault or by whom such damage
shall be caused unless caused by Landlord, its agent, employee or contractors; and in default of such repairs by
Tenant and upon notice to Tenant, Landlord may make the repairs and Tenant shall pay the commercially
reasonable cost thereof to Landlord promptly upon Landlord's demand therefore.
13a. Ice and Snow. Landlord, at is sole cost and expense, shall keep pedestrian access to the Premises and
Building free of ice and snow.
13b. Rights to Remedy. If Landlord shall fail to complete any maintenance or repair work contemplated by this
Section within forty-five (45) days of receiving written Notice from the Tenant that such maintenance or repair is
necessary and provided that such repair or maintenance could be completed within forty-five days, then the
Tenant shall have available to it the following remedies:
i. Tenant shall have the right to terminate this Lease; or
ii. Tenant shall have the right to obtain the necessary repair work at its own expense and then charge
the Landlord for such expense.
Notwithstanding the foregoing, if such maintenance or repair work is not capable of being completed within forty-
five (45) days of receiving written Notice from the Tenant that such maintenance or repair is necessary, provided
that Landlord has demonstrated good faith efforts in initiating the repair and or maintenance within forty-five (45)
days, Tenant shall not have the Right to exercise any Remedy afforded in this Section.
14. Alteration of Premises. Tenant shall not alter the exterior of the Premises and shall not make any structural
alteration to the Premises or any part thereof without first obtaining Landlord's written approval of such
alterations; and any improvements shall immediately become the property of the Landlord and shall remain upon
the Premises in the absence of agreement to the contrary. Tenant, however, shall have the right to make
interior, non-structural alterations, additions and improvements to the Premises that it shall deem desirable for
the operation of its business, without Landlord's consent, provided that any such alterations, additions or
improvements shall not diminish the value of the Premises nor impair the structural integrity of the Premises or
the building of which the Premises is a part. Such alterations shall be in conformance to applicable
governmental codes.
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15. Tenant's Work. Should Tenant wish to make any non-structural improvements to the Premises (“Tenant’s
Work”) during the Lease Term, Tenant shall apply for all local and state permits. Tenant shall be required to
provide any necessary architectural or engineering plans and such work shall be subject to the approval of
Landlord, such approval not to be unreasonably withheld. Tenant shall only employ licensed and insured
contractors and all work shall be conducted in a workmanlike manner and be of good quality. A copy of all
construction company liability insurance certificates in amounts as required by Landlord shall be provided to the
Landlord prior to the commencement of construction activities in the Premises. The insurance certificate shall
name the Landlord as a certificate holder and additional insured.
16. Signage. Tenant intends to keep the same signage on the Building as it has now. Any new signage shall
require approval of Landlord, such approval not to be unreasonably withheld and shall maintain such sign,
decoration, lettering, advertising matter or other thing as may be approved in good condition and repair at all
times. In addition to the Landlord’s consent of all signs, Tenant shall apply to any local agency, which might
require its consent for the design, size and location of signage including the Salem Redevelopment Authority.
The cost of all signage as well as the design and approval process to install the signage will be the sole expense
of the Tenant.
17. Utilities. Landlord has provided standard water, gas and electricity service to the Premises. Tenant shall pay all
charges for water, gas, electricity, telephone, heat and all other types of utilities and services to be used by the
Tenant on the Premises. If utilities shall not be separately metered then Tenant shall pay tenant's percentage
(which shall be determined, if applicable, by Landlord on a fair and equitable basis at Landlord’s sole discretion)
of the same to Landlord on a monthly basis, as additional rent. Initially, Tenant and Landlord are aware of only
two utility bills which must be apportioned (natural gas and water/sewer). Tenant and Landlord have agreed that
Tenant will initially pay $150 per month for natural gas and $255 per month for water/sewer. Such charges may
be adjusted from time-to-time by Landlord in a reasonable and fair manner. Any additional utility requirements
for operation of the Tenant’s apparatus must be done with the approval of the Landlord and at Tenant’s sole
expense.
Landlord shall under no circumstances be liable to Tenant in damages or otherwise for any interruption in
service of water, gas, electricity or other utilities and services caused by labor disputes, or by the making of any
necessary repairs or Acts of God or anything which is beyond Landlord's control. Landlord shall not be liable for
consequential damages in any event.
18. Insurance. Tenant shall keep in force at its own expense so long as this Lease remains in effect and during
such other time as Tenant is in possession of the Premises or any part thereof, Public Liability and Workmen's
Compensation insurance with respect to the Premises with a company or companies, and in form, acceptable to
Landlord. Public Liability policy shall provide minimum combined single limits of $1,000,000.00 per occurrence
and $1,000,000.00 aggregate on account of bodily injury and property damage. Tenant shall deposit the policy
or policies of such insurance or certificate thereof with Landlord, and all policies shall name Landlord any
person, firms or corporations designated by Landlord, and Tenant as insured parties and shall contain an
express waiver of any right of subrogation against Landlord. If the nature of Tenant's operation is such as to
place any or all of its employees under the coverage of local Workmen's Compensation or similar statutes,
Tenant shall also keep in force at its own expense, so long as this Lease remains in effect and during such other
time as Tenant occupies the Premises or any part thereof Workmen's Compensation or similar insurance
affording statutory coverage and containing statutory limits and provide Landlord with insurance certificate
confirming same. Landlord shall for the term of this lease carry General Liability and Building Replacement
insurance on the building in which the Premises is situated.
19. Indemnification. Tenant shall indemnify Landlord and save it harmless from and against any and all claims,
actions, damages, liability and expense in connection with loss of life, personal injury or damage to property
arising from or out of the occupancy or use by Tenant of the Premises or any part thereof (unless arising from
any omission, fault, negligence or other misconduct of Landlord on or about the Premises) or occasioned wholly
or in part by any act or omission of Tenant, its employees, agents, contractors, invitees or licensees.
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20. Additional Insurance Premium. Tenant shall not do or suffer to be done or keep or suffer to be kept, anything
in, upon or about the premises which will breach Landlord's policies insuring against loss or damage by fire or
other hazards (including but not limited to public liability) or which will prevent Landlord from procuring such
policies in companies acceptable to Landlord. If anything done, omitted to be done or suffered to be done by
Tenant, or kept or suffered by Tenant to be kept in, upon or about the premises shall cause the rate of fire or
other insurance on the premises or other property, of Landlord, in companies to Landlord to be increased
beyond the minimum rate from time to time applicable to the Premises for use for the purposes permitted under
this agreement or to such other property or of the Landlord, Tenant shall pay promptly upon Landlord's demand.
21. Landlord's Access to Premises. Tenant shall permit Landlord, its agents, employees and contractors to enter
the premises and all parts thereof at reasonable times during business hours (except in the event of an
emergency in which event Landlord may enter the Premises at any time) to inspect the same and to enforce or
carry out any provisions of this Lease, provided that any such inspection shall be carried out in a commercially
reasonable manner and in a manner reasonably calculated to minimize disruption of Tenant’s business. The
Landlord and its agents may show the leased premises to others within six (6) months before the expiration of
the final year of this term or any extension thereof, and may affix to any suitable part of the leased premises a
notice for letting or selling the leased premises or property of which the leased premises are a part and keep the
same so affixed without hindrance or molestation.
22. Assignment/Subletting. Tenant shall not assign this Lease in whole or in part, or sublet all or any part of the
Premises, or license concessions or lease departments herein, without the written consent of the Landlord first
obtained, such consent being at Landlord’s sole discretion, Landlord will not unreasonably withhold its consent.
Consent by Landlord to any assignment or subletting shall not constitute a waiver of the necessity for such
consent to any subsequent assignment or subletting. Notwithstanding such consent, Tenant shall remain liable
to Landlord for the payment of all rent and for the full performance of the covenants and conditions of this lease.
At the sole discretion of the Landlord, this lease may be terminated should an assignee be deemed
untrustworthy or financially insolvent.
23. Bankruptcy. If any sale of Tenant’s interest in the Premises shall be made under execution or similar legal
process, or if Tenant shall be adjudicated as bankrupt or insolvent and such adjudication is not vacated within
thirty (30) days, or if a receiver or trustee shall be appointed for its business or property, and such appointment
shall not be vacated within thirty (30) days, or if a corporate reorganization of Tenant or any arrangement with its
creditors shall be approved by a court under the Federal Bankruptcy Act, or if in any other manner Tenant's
interest under this Lease shall pass to another by operation of law, then in any of said events Tenant shall be
deemed to have breached a material covenant of this Lease and Landlord may, at its option, re-enter the
Premises and declare this Lease and the tenancy hereby created terminated; but notwithstanding such
termination, Tenant shall remain liable for all rent and damages which may be due at the time of such
termination and, further, shall be liable for the liquidated damages set forth in Section 27 of this Lease.
24. Tenant's Compliance. Tenant covenants and agrees that it will perform all agreements herein expressed on its
part to be performed, and that it will promptly upon receipt of written notice specifying action desired by Landlord
in connection with any such covenant (excluding the covenant to pay rent) commence to comply with such
notice; and, further, that if Tenant shall not commence and proceed diligently to comply with such notice to the
reasonable satisfaction of Landlord within forty-five (45) days after delivery thereof, then Landlord may at its
option enter upon the Premises and do the things specified in said notice, and Landlord shall have no liability to
Tenant for any loss or damages resulting in any way from such action by Landlord (except that Landlord agrees
to exercise reasonably due care), and Tenant agrees to pay promptly upon demand any reasonable expense
incurred by Landlord in taking such action. Any forcible or other action to be taken by Landlord shall not be
deemed to be, and Tenant hereby agrees that it does not constitute, trespass against the Tenant, Tenant
waiving any rights it has or may have with regards to actions to be taken by Landlord pursuant to this Section
25.
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25. Default. If the Annual Rent agreed to be paid, including all other sums of money which under the provisions
hereof may be considered as Additional Rent, shall be in arrears in whole or in part for ten (10) or more business
days after Tenant’s receipt of notice of such failure, Landlord may distrain therefore. If Tenant shall violate either
(a) the covenant to pay Annual Rent and shall fail to comply with said covenant within ten (10) business days
after being sent written notice of such violation by Landlord, or (b) any other covenant made by it in the Lease,
and shall fail to comply or commence compliance within twenty (20) days after being sent written notice of such
violation by Landlord, the Landlord may, at its option, re-enter the Premises and declare this Lease and the
tenancy hereby created terminated, and Landlord shall be entitled to the benefits of all provisions of applicable
laws respecting the speedy recovery of lands and tenements held over by tenants or proceedings in forcible
entry and detainer.
26. Landlord's Re-Entry. Liquidated Damages upon Tenant’s Default. Landlord and Tenant agree that they
cannot foresee when in the lease term a breach for nonpayment of rent may occur, what the commercial rental
market would be at the time of a breach, or what the cost of finding another tenant and the length of time the
property might remain vacant might be. Therefore, Tenant further agrees that notwithstanding re-entry and
termination pursuant to Section 26, Tenant shall be liable for liquidated damages in the amount of all rents and
additional rents due for the years (including fractions of a year, if any) remaining in the Lease Term, as well as
charges.
27. Landlord's Remedies. No mention in this Lease of any specific right or remedy shall preclude Landlord from
exercising any other right or from having any other remedy or from maintaining any action to which it may
otherwise be entitled either at law or in equity, and the failure of Landlord to insist in any one or more instances
upon a strict performance of any covenant of this Lease or to exercise any option or right herein contained shall
not be construed as a waiver or relinquished for the future of such covenant, right or option, but the same shall
remain in full force and effect unless the contrary is expressed in writing by Landlord.
28. Binding Agreement. This Lease and the covenants and conditions herein contained shall enure to the benefit
of and be binding upon Landlord, its successors and assigns, and shall enure to the benefit of Tenant and only
such assigns of Tenant to whom the assignment by Tenant has been consented by Landlord.
29. Notices. Any notice from the Landlord to the Tenant relating to the leased Premises or to the occupancy
thereof, shall be deemed duly served if mailed certified mail, return receipt requested, postage prepaid,
addressed to the Tenant: Mayor Kimberly Driscoll, City of Salem, 93 Washington Street, Salem, MA 01970. Any
notice from the Tenant to the Landlord relating to the leased premises or to the occupancy thereof, shall be
deemed duly served, if mailed to the Landlord by certified mail, return receipt requested, postage prepaid,
addressed to the Landlord at 17 Ivaloo Street, Suite 100, Somerville, MA 02143. All rent notices shall be paid
and sent to the Landlord c/o RCG LLC, 17 Ivaloo St. Suite 100, Somerville, MA 02143. Either party may at any
time, or from time to time, designate in writing a substitute address for that above set forth, and thereafter
notices shall be directed to such substitute address.
30. Brokerage. Each of the parties represents and warrants that there are no claims for brokerage commissions or
finders fee in connection with the execution of this Lease. Each of the parties agrees to indemnify the other
against and hold it harmless from, all liabilities arising from any such claim (including without limitation the cost
of counsel fees in connection therewith).
31. Submission of Lease. The submission of this Lease for examination does not constitute a reservation of or
option for the Premises, and this Lease becomes effective only upon execution and delivery thereof by Landlord
and Tenant.
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32. Damage to Premises. If the Premises shall be damaged by fire, the elements, unavoidable accident or other
casualty, but are not thereby rendered untenantable, in whole or in part, Landlord shall promptly at its own
expense cause such damage to be repaired. If by reason of such occurrence the Premises shall be rendered
untenantable only in part, Landlord shall promptly at its own expense cause the damage to be repaired and the
Annual Rent and additional rent meanwhile shall be abated proportionately as to the portion of the Premises
rendered wholly untenantable, Landlord shall promptly at its own expense cause such damage to be repaired,
and the Annual Rent and additional rent meanwhile shall be abated in whole, unless within sixty (60) days after
said occurrence Landlord shall give Tenant written notice that it has elected not to reconstruct the premises, in
which event this Lease and the tenancy hereby created shall cease as of the date of said occurrence, the rent to
be adjusted as of such date. As used in this section, the term "the premises" shall be taken to exclude fixtures,
floor coverings, furniture and equipment owned by Tenant. If twenty-five (25%) percent of floor space of the
Premises is untenantable, then either one of the parties may cancel this Lease if the Landlord cannot restore the
said Premises to the same or tenantable condition, as such premises reasonably were prior to casualty within
ninety (90) days from the occurrence of the casualty.
33. Eminent Domain. If the whole or any part of the Premises shall be taken under the power of eminent domain,
this Lease shall terminate, as to the part so taken, on the day when Tenant is required to yield possession
thereof, and Landlord shall make such repairs and alterations as may be necessary in order to restore the part
not taken to useful conditions; and the Rent shall be reduced proportionately as to the portion of the premises so
taken. If the amount of the Premises so taken is such as to impair substantially the usefulness of the Premises
for the purposes for which the same are hereby leased then either party shall have the option to terminate this
Lease as of the date Tenant is required to yield possession. All compensation awarded for such taking of the fee
and the leasehold shall belong to and be the property of Landlord, except the Landlord shall not be entitled to
any portion of the award made to Tenant for the cost of removal of stock and fixtures.
34. Quiet Enjoyment. Landlord agrees that upon Tenant's paying the Annual Rent and performing and observing
the agreements, conditions and other provisions on its part to be performed and observed, Tenant shall and may
peaceable and quietly have, hold and enjoy the premises during the Lease Term without any manner of
hindrance or molestation from Landlord or anyone claiming under Landlord, subject, however, to the terms of
this Lease. Tenant agrees not to allow noise or sound from its operation to impact other occupants of the
Building.
35. Surrendering Possession. Removal of Property upon Termination of Lease. At the termination of this Lease
or Tenant's right to possession by lapse of time or otherwise, Tenant shall yield up immediate possession of the
leased Premises to Landlord with all keys and locks thereto and all improvements, alterations and fixtures now
or hereafter made or installed therein, all in broom clean and sightly condition and in good repair, except for
wear and tear and damage by fire or other casualty and except to the extent that Landlord is required by this
Lease to maintain and/or repair such improvements, alterations and fixtures. At the termination of this Lease or
Tenant’s right to possession, Tenant shall remove all its trade fixtures, electronic equipment, security equipment,
data transmission device(s), removable metal partitions and any other like property installed by Tenant at its
expense; and Tenant shall repair any damage to walls, floors or ceilings resulting from the removal of such
items. In the event of the Tenant’s failure to remove any of Tenant’s property from the premises, Landlord is
hereby authorized, without liability to Tenant for loss or damage thereto, and at the sole risk of Tenant, to
remove and store any of the property at Tenant’s expense, or to retain same under Landlord’s control or to sell
at public or private sale, without notice any or all of the property not so removed and to apply the net proceeds of
such sale to the payment of any sum due hereunder, or to destroy such property.
36. Holdover. In the event Tenant remains in possession of the Premises after the expiration of the Term or Option
Term, as the case may be, without the execution of a new Lease or renewal of this Lease Tenant shall be
deemed to be occupying the Premises as a tenant from month to month and shall pay monthly rent at One
Hundred Twenty-Five (125%) percent of the Rent then in place, and shall additionally be subject to all the other
conditions, provisions, and obligations of this Lease insofar as the same are applicable to a month to month
tenancy.
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37. Environmental Matters. To the best of Landlord's knowledge, Landlord represents that no environmental
restrictions exist resulting from contaminants in, on or under the Premises that would prohibit the Tenant’s Use
as previously defined. Landlord agrees to indemnify and hold Tenant harmless from and against any and all
liability, damages, losses, expenses, fines and costs, including without limitation costs of investigation, defense
and cleanup or other amelioration, arising out of the presence of any contaminants, hazardous substances,
pollutants, waste and/or mixtures on, in or under the Premises and/or the release of such materials on, in, under
or from such Premises, unless placed there by Tenant. Tenant agrees that Tenant shall not use any hazardous
materials in or around the Premises except for ordinary household cleaners and gas and oil as is used in
Tenant's ordinary course of business and for materials normally used in the course of and in connection with
Tenant's use as described in this Lease. Tenant shall indemnify and hold Landlord harmless for any hazardous
material introduced in, on or around the Premises by Tenant.
38. Liability of Owner. No owner of the property of which the leased premises are a part shall be liable hereunder
except for breaches of the Landlord’s obligations occurring during the period of such ownership. The obligations
of the Landlord shall be binding upon the Landlord’s interest in said property, but not upon other assets of the
Landlord, and no individual partner, agent, trustee, stockholder, officer, director, employee or beneficiary of the
Landlord shall be personally liable for performance of the Landlord’s obligations hereunder.
39. Independent Covenants. Other than the rights of Tenant explicitly stated in Section 13, Tenant covenants to
pay when due (without any offset, deduction, or abatement whatsoever) the Rent. All Rent payments are due to
Landlord on the first day of each calendar month unless otherwise specifically provided. Rent shall be paid by
recent (not more than 30 days old) check drawn on a Massachusetts bank payable to Landlord and shall be sent
to the address noted in paragraph 6 above, or at such other address as Landlord may, from time to time by
written notice direct. The foregoing covenant of Tenant to pay Rent is an independent covenant.
40. Condominium. In the case Landlord elects to convert the Building into a condominium and the Premises into a
unit (or a subdivision or combination of units) thereof or the Premises otherwise becomes a unit in a
condominium during the Lease Term or any renewal thereof, Tenant agrees to comply with all condominium
bylaws, rules, and regulations provided that said bylaws, rules and regulations dot not interfere with the day to
day business practices of Tenant within the premises. Landlord agrees and warrants that the condominium
bylaws, rules, or regulations, if any, shall permit the Use contemplated in this Lease.
41. Tenant Access to Premises. During the period between execution of this Lease and Commencement Date,
Tenant shall be allowed access to the Premises with verbal notice to Landlord or Landlord’s agents, so long as
Tenant follows rules and regulations applicable within the Premises, and Tenant shall do so at its own risk and
without right of recourse to Landlord or its agents of affiliates.
42. Entire Agreement. This Lease and the Exhibits attached hereto set forth all the promises, agreements,
conditions and understandings between Landlord and Tenant with respect to the Premises, and there are no
promises, agreements, conditions or understandings, either oral or written, between them other than are herein
set forth. No subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord
or Tenant unless reduced to writing and signed and delivered by each of parties thereto.
43. Massachusetts Lease. This Lease shall be governed by and construed in accordance with the laws of
the Commonwealth of Massachusetts. Tenant agrees that any actions or proceedings to which Landlord is a
party arising directly or indirectly from this Lease shall be litigated in any state or federal court having situs within
the Commonwealth of Massachusetts and that that Court shall have jurisdiction thereof.
44. Conflict of Interest. The Lease is intended to be in accordance with all provisions of the Massachusetts
Conflict of Interest Law (M.G.L. Chapter 268A).
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45. First Right to Lease Office Space in Building. Tenant shall have first right to lease any office space that is
coming available within the Building. Landlord shall provide Tenant notice that a particular space used as offices
within the Building is becoming available and at what price the space could be leased. Such notice shall provide
Tenant with at least thirty (30) days to decide whether it wishes to lease the space becoming available under the
offered terms. If Tenant does not respond within thirty (30) days notice, Landlord shall be free to lease the space
to any prospective other tenant. This provision shall not apply to any space where an existing Tenant has an
option to extend its lease.
a. Tenant shall have an explicit right to lease Suite 202A at an additional rate of $13,600 per year, with
additional monthly installments of $1,133.33 for the entire Term of the Lease by providing Landlord with notice of
desire to add Suite 202A to the Premises by no later than December 10, 2010. If Tenant exercises this option,
Landlord will work in good faith to determine the location of an additional demised office at within Suite 202A and
Landlord will construct such office prior to February 1, 2011. Tenant shall also be responsible for directly
metered utilities and/or a proportional share of utilities for this space. Tenant shall have the same option to
extend the Lease for Suite 202A as it has for the balance of the Premises under Section 8 above. The rent for
any Option years for this space shall be adjusted in the same manner as for the balance of the Premises under
Section 8 above.
Dumpster and Recycling. Landlord has provided trash and recycling removal
46.
services at the building. If Tenant desires, Tenant shall be allowed to utilize
the Building’s trash removal services for an initial cost to be determined by
negotiation between Landlord and Tenant. This cost may change from time to
time.
Use of Basement for Storage. Tenant shall have the right to utilize the space in
47.
the basement of the Building that is currently used by Tenant for the purpose
of storage, subject to approval of any applicable regulatory agencies.
Notwithstanding this right, Landlord reserves the right to conduct
construction, maintenance or repairs needed for the premises or for any other
portion of the building. Tenant agrees that to the extent Tenant stores any
items in the basement that Tenant does so at its own risk and shall hold
Landlord harmless from any damage or loss that might befall such items.
Tenant acknowledges that basement spaces are by nature inherently damp
and more prone to water infiltration and Tenant agrees that Landlord is not
liable for water infiltration or any damage caused due to water infiltration.
Tenant acknowledges that its basement space as noted in this section
contains utilities servicing the building as well as other tenants within the
building and agrees to act reasonably in allowing access for service or repair
of said utilities.
Parking. Tenant shall have the right to continue to use 8 parking spaces in the parking area. Landlord shall
48.
make available an additional 2 parking spaces to Tenant when any current agreement with those using the
spaces can be terminated but in any event prior to September 1, 2011.
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IN WITNESS WHEREOF, the LANDLORD and TENANT have hereunto set their hands and common
seals this _____ day of , 2010.
PEABODY BLOCK LLC, LANDLORD
By: Alex M. Steinbergh, Manager, its duly authorized officer
17 Ivaloo Street Suite 100
Somerville, MA 02143
617-625-8315
120 Washington Street, Suite 202A
Salem, MA 01970
978-740-0006
CITY OF SALEM, TENANT
By: Mayor Kimberly Driscoll, its duly authorized officer
93 Washington Street
Salem, MA 01970
TENANT CONTRACT FOR FINANCIAL INQUIRIES:
TENANT PHONE NUMBER FOR BUILDING MATTERS:
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#661 - COMMUNICATION FROM THE MAYOR REGARDING TAX CLASSIFICATION HEARING
The following c ommunication from the Mayor regarding Tax Classification Hearing and
acceptance of 1.65 as a tax rate for Fiscal Year 2011, was received and filed.
December 7, 2010
Honorable Salem City Council
93 Washington Street
Salem, Massachusetts 01970
Re: Tax Certification Transmittal Letter
Ladies and Gentlemen of the Council:
As you know, each year following a tax classification hearing the City Council must vote to set the
residential tax factor, which establishes the tax rate for the fiscal year. Every city and town in
Massachusetts is limited in how much they can raise property taxes by Proposition 21/2, which caps new
property taxes at no more than 21/2% of the prior year’s levy. This year, the tax rate being recommended
will be approximately $450,000 under the City’s allowable levy capacity and will in turn result in an average
single family home bill increase of approximately $97.00, one of the lowest increases in the North Shore.
While lower than many surrounding cities and towns, it is still never easy or pleasant to increase taxes,
especially in a down economy, but we have taken measures to reduce the overall impact to Salem
homeowners.
As you may recall, real estate taxes account for a majority of the City’s revenues and help cover expenses
associated with all local government activities, including public schools, police, fire and public works
services. With other funding sources, such as state aid, declining there is increased pressure on property
taxes to meet the cost of delivering quality municipal services that residents have come to want and expect.
This year as in prior years, the Administration and the Council partnered to adopt a sensible, but austere
city budget. In particular, this year we were able to balance savings from employee health insurance
reforms with new revenues from a meals excise to limit property tax increases to homeowners. As a result,
we adopted a lean budget that maintained existing city services, set aside $600,000 in the city’s rainy day
account, and limited impacts to property owners with a reduced tax levy that is $450,000 under our
allowable limit. In fact, we have operated under our levy limit for two of the last three years, something only
a small percentage of communities have been able to accomplish.
Lastly, in looking at community comparisons, you will note that the average Salem single family tax bill is
among the lowest out of eight nearby and/or similar sized cities and towns. From just about every local
economic indicator, our diligence and hard work over the last five years has paid off as we are in a much
stronger financial position than we were four years ago, a trait that will serve us well as we continue to
weather the economic downturn and the likely challenges that lie ahead in both local aid funding and power
plant revenues.
As we set the tax rate for the current fiscal year, the recommendation is to maintain the current 1.65 CIP
split tax rate. Any reduction in the CIP would further burden residential property owners, while any increase
would further burden commercial property owners, who already pay more than one and one half times the
rate that residential homeowners pay. Further, many of our commercial tax payers are small, independently
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owned businesses which have a much harder time absorbing a large annual tax increase. I believe this
strikes a good balance between trying to provide relief to homeowners, while also trying to grow our
commercial base.
Finally, as we have previously discussed, one of the best ways for us to lower impacts to residential
property owners is to encourage and promote new growth, particularly new commercial growth. I believe
that new revenues are an important ingredient in meeting our collective desire to keep Salem a thriving
community that delivers quality education, public safety and public works services in an affordable and
efficient manner.
I am planning on attending the Council Tax Classification hearing this Thursday at which the City Assessor
will be making a more detailed presentation regarding the FY2011 tax certification. In the meantime, please
feel free to reach out to me with any questions or concerns.
Very truly yours,
Kimberley Driscoll
Mayor
#662 - RESIDENTIAL FACTOR FOR THE FOUR CLASSES OF PROPERTY
Councillor Prevey introduced the following Order, which was adopted by a roll call vote of 10
yeas, 0 nays, 1 absent. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan,
Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely
was recorded as absent.
ORDERED: That the City of Salem adopt a Residential Factor of 85.4073% (1.65) for Fiscal
Year 2011.
Councillor Prevey moved immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
#663 - OPEN SPACE EXEMPTION
Councillor Prevey introduced the following Order which was adopted by a roll call vote of 9
yeas, 1nays, 1 absent. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ryan, Ryan, Sargent,
Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Ronan was
recorded as voting in the negative. Councillor Lovely was recorded as absent.
ORDERED: That the City of Salem NOT adopt an Open Space Exemption for fiscal year
2011.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
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CITY OF SALEM
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#664 - RESIDENTIAL EXEMPTION
Councillor Prevey introduced the following Order which was adopted by roll call vote of 8
yeas, 1 nay, 1 absent, 1 present. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ryan, Ryan,
Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Ronan
was recorded as voting in the negative. Councillor Pelletier was recorded as voting present.
Councillor Lovely was recorded as absent.
ORDERED: That the City of Salem NOT adopt a Residential Exemption for fiscal year 2011.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
#665 - SMALL COMMERCIAL EXEMPTION
Councillor Prevey introduced the following Order which was adopted by roll call vote of 8
yeas, 1 nay, 1 absent, 1 present. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ryan, Ryan,
Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Ronan
was recorded as voting in the negative. Councillor Pelletier was recorded as voting present.
Councillor Lovely was recorded as absent.
ORDERED: That the City of Salem NOT adopt a Small Commercial Exemption for fiscal
year 2011.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
#666 - ORDINANCE TRAFFIC, PARKING PROHIBITED CERTAIN STREETS, WEST CIRCLE
Councillor O’Keefe introduced the following Ordinance which was adopted for first passage.
In the year two thousand and ten
An Ordinance to amend an Ordinance relative to Traffic Chapter 42, Section 51, ”Parking
Prohibited Certain Streets”
Be it ordained by the City Council of the City of Salem, as follows:
Section 1. West Circle in front of #11, 12 and 13, No Parking in the traffic rotary circle.
“No Parking all sides”.
Section 2. This Ordinance shall take effect as provided by City Charter.
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CITY OF SALEM
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REGULAR CITY COUNCIL MEETING
#667 - ORDINANCE TRAFFIC, PARKING TIME LIMITED, UNMETERED ZONES, BOSTON
STREET
Councillor Sosnowski introduced the following Ordinance which was adopted for first
passage.
In the year two thousand and ten
An Ordinance to amend an Ordinance relative to Traffic, Chapter 42, Section 57A “Parking
Time Limited, Unmetered Zones”
Be it ordained by the City Council of the City of Salem, as follows:
Section 1. In front of #7 Boston Street Mon. thru Sat. 9AM to 5PM, “Parking Time Limited,
Unmetered Zones”
Section 2. This Ordinance shall take effect as provided by City Charter.
#668 – SUSPEND RULE 31B COMMITTEE ON PUBLIC HEALTH, SAFETY & ENVIRONMENT
Councillor Pinto introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the
Committee on Public Health, Safety and Environment of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#669 – SUSPEND RULE 31B COMMITTEE ON COMMUNITY & ECONOMIC DEVELOPMENT
Councillor Sargent introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the
Committee on Community and Economic Development of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#670 – SUSPEND RULE 31B COMMITTEE ON GOVERNMENT SERVICES
Councillor Pelletier introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the
Committee on Government Services of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
567
CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
#671 – SUSPEND RULE 31B COMMITTEE ON ADMINISTRATION & FINANCE
Councillor Prevey introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the
Committee on Administration and Finance of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#672 – SUSPEND RULE 31B COMMITTEE ON ORDINANCES, LICENSES & LEGAL AFFAIRS
Councillor O’Keefe introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the
Committee on Ordinances, Licenses and Legal Affairs of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
Councillor O’Keefe assumed the Chair.
#673 – SUSPEND RULE 31B COMMITTEE OF THE WHOLE
Councillor McCarthy introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the
Committee of the Whole of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#674 – MONTHLY FINANCIAL REPORT
Councillor Prevey introduced the following Order, which was adopted and rule 31B be
suspended to carry the matter into the New Year.
ORDERED: That the Monthly Financial Report dated October 31, 2010, referred to the
Committee on Administration and Finance.
#675 – (#640 - #643) GRANTING LICENSES
Councillor O’Keefe offered the following report for the Committee on Ordinances, Licenses
and Legal Affairs. It was voted to accept the report and adopt the recommendation.
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CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
The Committee on Ordinances, Licenses and Legal Affairs to whom was referred the matter
of granting certain licenses has considered said matter and would recommend approval.
JUNK DEALER I. Talkowsky and Son, 18 Phillips St., Salem
PUBLIC GUIDE Paul Gordon, 56 Margin St., Salem
TAG DAYS SHS Girls & Boys Basketball, Jan. 15, 2011 & Jan. 22, 2011
SHS Gymnastics, Jan. 1, 2011 & Jan. 30, 2011
#676 – (#619) ACCEPT M.G.L. CH. 31 SEC. 108P COMPENSATION TO COLLECTOR &
TREASURER
Councillor Prevey offered the following report for the Committee on Administration and
Finance. It was voted to accept the report and adopt the recommendation.
The Committee on Administration and Finance to whom was referred the matter of
acceptance of Massachusetts General Law Chapter 31 section 108P for compensation to Collector
and Treasurer for additional training, has considered said matter and would recommend approval.
#677 – (#588) ACCEPT M.G.L. TO ACCEPT EARLY RETIREMENT INCENTIVE PROGRAM
Councillor Prevey offered the following report for the Committee on Administration and
Finance. It was voted to accept the report and adopt the recommendation.
The Committee on Administration and Finance to whom was referred the matter of
acceptance of Massachusetts General Law Chapter 188 section 66, Acts of 2010 for an Early
Retirement Incentive Program, has considered said matter and would recommend that the matter
remain in Committee.
#678 – (#616) APPROPRIATION TO REDUCE TAX RATE
Councillor Prevey offered the following report for the Committee on Administration and
Finance. It was voted to accept the report and adopt the recommendation.
The Committee on Administration and Finance to whom was referred the matter of
acceptance of an Appropriation of $934,070.00 to reduce the tax rate, has considered said matter
and would recommend approval.
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CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
#679 – (#621) BOND ORDER IN THE AMOUNT OF $312,000.00
Councillor Prevey offered the following report for the Committee on Administration
and Finance. It was voted to accept the report and adopt the recommendation by roll call vote of 10
yeas, 0 nays, 1 absent. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan,
Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely
was recorded as absent.
The Committee on Administration and Finance to whom was referred the matter of
acceptance of a Bond Order in the amount of $312,000.00, has considered said matter and would
recommend approval.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
#680 – (#620) BOND ORDER IN THE AMOUNT OF $687,062.00
Councillor Prevey offered the following report for the Committee on Administration
and Finance. It was voted to accept the report and adopt the recommendation by roll call vote of 10
yeas, 0 nays, 1 absent. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan,
Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely
was recorded as absent.
The Committee on Administration and Finance to whom was referred the matter of
acceptance of a Bond Order in the amount of $687,062.00, has considered said matter and would
recommend approval.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
#681 - RIGHT OF ENTRY AGREEMENT WITH SWH REALTY TRUST, 15 PARKING SPACES
ON COMMERCIAL STREET
City Solicitor Elizabeth Rennard submitted the following Order to authorize the Mayor
to enter into a Right of Entry Agreement with SWH Realty Trust, to construct 15 additional public
parking spaces on Commercial Street, which was adopted by roll call vote of 10 yeas, 0 nays, 1
absent. Councillors Furey, O’Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan, Sargent,
Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely was
recorded as absent.
ORDERED: The Mayor is hereby authorized to enter into a Right of Entry Agreement with
SWH Realty Trust, Stephen W. Haley, trustee so that SWH Realty Trust may construct 15
additional public parking spaces on Commercial Street. The additional parking spaces shall be
constructed in accordance with a plan approved by the City Engineer and Director of Public
570
CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
Services and SWH Realty Trust shall be subject to any conditions required of the City Solicitor
which shall include signage designating all spaces open to the public, additional lighting and
maintenance.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
#682 - #687 LICENSE APPLICATIONS
The following license applications were referred to the Committee on Ordinances, Licenses
and Legal Affairs.
PUBLIC GUIDES Richard Metzger, 25 Shepard St., Marblehead
Michael Metzger, 25 Shepard St., Marblehead
Susan Metzger, 25 Shepard St., Marblehead
Herb Van Dam, 361 Lafayette St., Salem
Allen Winecour, 161 Garland St., Everett
Gordon Lothrop, 12 Fairfield St., Salem
Robert Woodward, 56 Hatherly Rd., Rockland
Jeffrey Langone, 25 Brookside Ln., Burlington
Brad Biscosnet, 24 Pawtucket Blvd., Tyngsboro
Steven Kee, 185 Lafayette St., Salem
Christiann Van Damme, 185 Lafayette St., Salem
Michelle Gilliss, 3 Auburn St., Danvers
Mollie Stewart, 24 Essex St. #1, Salem
Jeffrey Horton, 27 Bar Link Way #81, Swampscott
Fran Marrow, 12 Strawberry Hill Ln., Danvers
SEAWORMS Antonios Konstantilakis, 4 Bow St., Salem
Jose Machado, 3 Emmett St., Peabody
Joe Mendonca, 22 Spring St., Peabody
Analiano Silva, 25 Driscoll St., Peabody
Manuel Silva, 80 Northend St., Peabody
SECON HAND Boston St. Resale, 134 ½ Boston St., Salem
CLOTHING Two Girls Shop, 320 Derby St., Salem
SECOND HAND Treasurers Over Time, 139 Washington St, Salem
VALUABLES Bernard’s Jewelers, 179 Essex St., Salem
Europa Ltd., 3 Hawthorne Blvd., Salem
The Record Exchange, 256 Washington St., Salem
Tobies Jewelry, 142 Washington St.,Salem
Salem Used Furniture & Antiques, 107 ½ Bridge St., Salem
Two Girls Shop, 320 Derby St., Salem
Glass And Etc., Museum Place Mall, Suite 129, Salem
571
CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
Filigree & Fancy, Pickering Wharf, Salem
TAG DAYS S.H.S. Swimming & Diving, January 23, 2011 & January 29, 2011
S.H.S. Field Hockey, September 17, 2011 & October 1, 2011
#688 - #689 CLAIMS
The following Claims were referred to the Committee on Ordinances, Licenses and Legal
Affairs.
Michael Brunswick, 14 Williams St., Unit 1A, Salem
Kevin O’Brien, 16 Williams St. Salem
#691 - #693 BONDS
The following Bonds were referred to the Committee on Ordinances, Licenses and Legal
Affairs and returned approved.
CONSTABLE: Johanna Rodriguez, 4 Holly St. #2, Salem
Elvin Rodriguez, 4 Holly St. #2, Salem
Ernasto Ayala, 4 Holly St. #1, Salem
Victor Nolasco, 298 Washington St., Salem
(#217A) - SECOND PASSAGE – ORDINANCE AMENDING PUBLIC NOITCE AND
AVAILABILITY OF INFORMATION
The matter of second and final passage of an Ordinance amending , Public Notice and
Availability of Information, was then taken up. The Ordinance was adopted for second and final
passage.
(#624) – ORDINANCE AMENDING TRAFFIC, HANDICAP PARKING, LAFAYETTE STREET
The matter of second and final passage of an Ordinance amending Traffic, Handicap
Parking, Lafayette Street was then taken up. The Ordinance was adopted for second and final
passage.
572
CITY OF SALEM
DECEMBER 9, 2010
REGULAR CITY COUNCIL MEETING
(#625) – ORDINANCE AMENDING TRAFFIC, HANDICAP PARKING, HOWARD STREET
The matter of second and final passage of an Ordinance amending Traffic, Handicap
Parking, Howard Street was then taken up. The Ordinance was adopted for second and final
passage
(#626) – ORDINANCE AMENDING TRAFFIC, HANDICAP PARKING, ESSEX STREET
The matter of second and final passage of an Ordinance amending Traffic, Handicap
Parking, Essex Street was then taken up. The Ordinance was adopted for second and final
passage
On the motion of Councillor O’Keefe the meeting adjourned at 8:52 P.M.
ATTEST: CHERYL A. LAPOINTE
CITY CLERK